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Sole Proprietorship or LLC?

by tdbesq, Window Shopper

  • Created: April 20, 2010, 4:35 pm
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I am running my law practice as a sole proprietor. I know some solos are set up as LLC's or PC's (professional corporation - may be a Virginia thing). Should I change my current setup? I have no employees, and probably won't be in a position to hire anyone for several years. Income is very variable, so the whole paying myself a salary is problematic. Any suggestions?

Tags: Discuss Popular Topics, Starting & Registering a Business
‹ Registered in 1 state but client in other state Registering a Business Without a physical Location For the Business ›

BizResearcher | Window Shopper | 4/21/2010 - 8:05 am

The difference between being an LLC and a sole proprietorship is in the legal protection offered. A sole proprietorship is considered an extension of the business owner. The assets and debts of the business are considered personal assets and debts of the business owner. If there is a possibility that you could be sued you would be better off to be registered as an LLC or professional corp. to separate your personal assets from those of the business.